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Wednesday, May 2, 2012

Some snippets about Maybank

Recently, I received Maybank annual
reports, it's a big change. Now no more thick and heavy book, unless
you ask for it. It came with thin booklet and a CD. To my
surprise, the CD came with CEO presentation, you can view something
like “youtube” as the CEO talk to you at front and presenting the
annual report. Compare to last year, where CD came with boring PDF file, now this is big improvement!

Maybank was my first investment when I
was schooling at form six. In fact, last time I never did any
homework. The reason I bought it last time was because it's the first
bank I came to know, where I open my first Saving Account and the
branch was near my house. Luckily I made the right choice, Maybank
still exist today!

Today, I still make Maybank as my core
investment, meaning about 30 to 40% of fund park at Maybank's share. After so
many years' up and down, I learnt lesson how to handle the share with profit trading. The 1997
crisis and 2008 financial crisis, both sent Maybank's share price
down by nearly 50% from the highest. The recent crisis in 2008 was
most scary, the market value just gone by 50% in few weeks time. That
time, I still remember, almost all news paper advised investor sell
Maybank and many brokers gave target price of below RM3.00! The news of Maybank
bought Indonesia BII (Bank International Indonesia), they need money for the purchase, so Maybank
came out Right Issue at RM2.75. After the announcement, Maybank's share drop by 10%, 20%, 40% and more, people think Maybank had over paid for the deal. I am not sure how many dare to buy Maybank's share at that time! I advised friends buy Maybank stock and keep for long term, but I came to know later that nobody actually interest to buy at that time.

Today, Maybank
is trading at the range of RM8.65 to RM9.00! Many might not know Maybank is still forming up trend movement. It gave dividend of 60 cents last year, with RM8.65, it's
about 6.91%. I think people still willing to pay for RM10.10 a share which translate to 5.94%, is quite reasonable. (but again, I will wait for next financial crisis to buy more, now not in any hurry to buy it)

When one calculate the PE ratio, with earning per share of 68 cent, 14 times is about
RM9.52. RM10.10 is about 15 times PE.

From the earning
side, Maybank's profit grow by 8% annually, last year, a big
surprise! As the profit grow by nearly 20%. Thanks for the re branding exercise and purchase of Kim Eng. Now, the "Tiger" grows with "wings", it can fly higher and further.

However, I don't think it will repeat the same growth as of last year. Assume it can't grow and with flag earning for the
next few years, with dividend policy of 40 to 60%, one can easily
beat the bank's FD rate if buy Maybank whenever the price go down.
Also, Maybank reward the share holder handsomely by providing Dividend
Reinvestment Plan. Just imagine how nice if you can buy Maybank with 10%
discount to current market price. This enable investor to accumulate Maybank's share at RM8.00 when
the current market price is RM8.80!

Maybank don't pay
me to promote the stock, this is just to share with all how to take investment from business point of view and make huge potential
return!

4 comments:

Sonic,Actually, you just need to read 3 reports in annual report. You may refer to "Fundamental Analysis" at the left column of my blog for simple points. For each stock, just come out with your own check list, similar to the one "Investment Check List" where you can find from this blog. However, one kind of rice feed different kind of people, my investment objective might not suitable for you, hence, always build one that fix to your investment style.

My remisier has retired- he was not market savvy in my opinion. I am looking for a more knowledgeable one. I had wrote an email to you. If you didn't receive, pls write to me at infopurplepumpkin@gmail.com, TQ.

About Me

The stock markets never changes, because of greed, people chase to buy and cause the high price go even higher. At time, because of fear, people sell like tomorrow is hopeless and cause the low price become lower and lower. It happened before and will happen again. It's just a question of WHEN.
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You can create your own wealth, provided you are serious, passion, discipline and willing to learn the skill!
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This blog is for purpose of sharing investment info only. It's not for intention of speculate to buy or sell of any stock. Do make your homework and plan properly before invest in stock market.